QUESTIONS [  CLICK HERE FOR ANSWER]

True

False

1.0

Receipts and payments account starts with the balance in the beginning and ends with the balance at the end

2.0

Income and expenditure account is a real account

3.0

General donations of small amount appearing in Receipts and Payments account are treated as income and carried to the credit side of Income and Expenditure Account

4.0

Entrance fees, if treated non-recurring in nature, should be taken to the Income and Expenditure Account

5.0

Proceeds from the sale of old newspapers by a club appearing as a receipt in the Receipts and Payments Account is not treated as income

6.0

Subscription received in advance at the end of an accounting period are shown on the assets side of the closing balance sheet

7.0

A club has match fund of $2,000. During a particular accounting period, the match expense amounted to $1,000. These expenses should be deducted from the match fund and the balance of $1,000 should be shown on the liabilities side of the balance sheet